Oil prices edged higher in quiet Asian trade today as dealers hunted bargains while keeping an eye on a supply glut in the United States, analysts said.
New York’s main contract West Texas Intermediate (WTI) crude for December delivery gained four cents to $94.66 a barrel in mid-morning Asian trade, while Brent North Sea crude for December delivery climbed nine cents to $106.32.
“Prices are relatively muted,” Teoh Say Hwa, head of investment at Phillip Futures in Singapore, said.
“The minimal movement could be due to investors staying on the sidelines before the release of the weekly EIA (Energy Information Administration) report which would give them more directions relating to the US stockpiles,” she said.
US crude inventories
Crude inventories in the United States have climbed in the past six weeks to about 28 million barrels, raising concerns about oversupply in the world’s largest economy and top crude consumer.
WTI is trading below the $95 threshold after falling for four consecutive sessions last week under pressure from the build-up in crude stockpiles, before rising slightly on yesterday.
The EIA will release its weekly inventory report tomorrow.
Libya’s oil output
Libyan oil production levels also remain in focus, analysts said. The Libyan state oil company had yesterday said that protesters had maintained their blockade of the main oil facilities in the country, where the production has fallen 80 per cent since July.
Mohamed al-Harairi, an official at the National Oil Corporation, said exports from Al-Hariga terminal in eastern Libya, which the Government had said would resume by Monday, had not gone ahead for logistical reasons.
Protesters demanding jobs have been blocking the terminals since late July, causing around $13 billion in losses to Libya’s oil-dependent economy, authorities said.